prashantsharmaps05@gmail.com saysDecember 6, 2023 at 4:51 pmHi John-I just wanted to understand in question 2 why we haven’t considered labor cost $10/unit in calculating total factory cost? I see we have taken just $5/ hour – is that because of labour budget?Log in to Reply
John Moffat saysDecember 6, 2023 at 5:30 pmYes – it is because they are only budgeting on 100,000 hours of labour.Log in to Reply
prashantsharmaps05@gmail.com says
Hi John-
I just wanted to understand in question 2 why we haven’t considered labor cost $10/unit in calculating total factory cost? I see we have taken just $5/ hour – is that because of labour budget?
John Moffat says
Yes – it is because they are only budgeting on 100,000 hours of labour.